busymom
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Why is the rum always gone? Oh...that's why.
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Post by busymom on Feb 24, 2020 11:34:10 GMT -5
It's going dooowwwwwwn. The last time I checked, it was at around -850. Your thoughts?
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nittanycheme
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Post by nittanycheme on Feb 24, 2020 11:46:11 GMT -5
I'm only watching one stock, really. I have stock options that I'm trying to decide whether or not to exercise. So, far that stock is down a bit, but is still pretty close to its 5 year high. Still pondering..... Although, I'm somewhat overweighted in that stock if you include the options.
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Gardening Grandma
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Post by Gardening Grandma on Feb 24, 2020 11:49:56 GMT -5
We are long overdue for a correction. the market's been on an artificial high for too long anyway.
I did lock in an interest rate on a refi
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 24, 2020 11:59:14 GMT -5
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 24, 2020 12:00:13 GMT -5
We are long overdue for a correction. the market's been on an artificial high for too long anyway. I did lock in an interest rate on a refiHow is that related to a bad day in the stock market?
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lynnerself
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Post by lynnerself on Feb 24, 2020 12:04:37 GMT -5
I'm not sure this is a normal correction. It seems to be driven by fear of a pandemic.
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CCL
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Post by CCL on Feb 24, 2020 12:05:11 GMT -5
I also locked in a lower rate with a refi. That lower payment helps me with market fluctuation since now I can make lower withdrawals from the 401k.
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CCL
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Post by CCL on Feb 24, 2020 12:07:27 GMT -5
I'm not sure this is a normal correction. It seems to be driven by fear of a pandemic. I'm thinking it will be short-lived. Really, though, aren't corrections sometimes driven by fear?
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MN-Investor
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Post by MN-Investor on Feb 24, 2020 12:09:09 GMT -5
For the young folks heavily invested in stocks - you're looking at the long term, so stay the course. For retired folks like me, this kind of day tests your asset allocation resolve. My husband and I decided on a 40% investments in stocks when he retired, down from about 90%. So, while my stock holdings are down today, my bond funds are tempering that loss. I'm staying the course. I do have about 6% in cash & money market securities. I'm not sure what to do with that. I'll wait.
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Deleted
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Post by Deleted on Feb 24, 2020 12:11:13 GMT -5
Supply Chains are in complete panic mode right now, a lot of companies had their normal extra stock during Chinese New Year and extraordinary efforts are being implemented to avoid stockout when that inventory exhausts around April. Manufacturing plants are nowhere near back to capacity and transportation is snarled, this will not resolved anytime soon.
This is going to cost companies a lot of money to airship product at a significantly increased cost or move production temporarily/permanently.
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Gardening Grandma
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Post by Gardening Grandma on Feb 24, 2020 12:28:54 GMT -5
We are long overdue for a correction. the market's been on an artificial high for too long anyway. I did lock in an interest rate on a refiHow is that related to a bad day in the stock market? A bad day in the stock market tends to drive up short term interest rates. It does not have a big effect on long term rates, but right now, we don't know if this is a short term drop or a longer term drop. So, if it lasts and if this is the beginning of a pullback, it could affect longer term interest rates. I had been leaning towards locking in anyway
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Gardening Grandma
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Post by Gardening Grandma on Feb 24, 2020 12:30:44 GMT -5
For the young folks heavily invested in stocks - you're looking at the long term, so stay the course. For retired folks like me, this kind of day tests your asset allocation resolve. My husband and I decided on a 40% investments in stocks when he retired, down from about 90%. So, while my stock holdings are down today, my bond funds are tempering that loss. I'm staying the course. I do have about 6% in cash & money market securities. I'm not sure what to do with that. I'll wait.
This. As retirees with a low tolerance for volality, we are 60/30 (bond/stock). So drops affect us, just not as much. I always make sure there is enough to cover a couple of years' worth of RMDs without having to sell in a bear market. We have a CD coming due in October we can use if this continues. My question is for those who keep their emergency funds in stocks. How's that working for you on days like today? How will it work if this lasts 6 months or a year?
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Gardening Grandma
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Post by Gardening Grandma on Feb 24, 2020 12:33:20 GMT -5
It's now down almost 1000
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busymom
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Why is the rum always gone? Oh...that's why.
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Post by busymom on Feb 24, 2020 12:34:49 GMT -5
It's officially hit -1000. When will it end?
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Deleted
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Post by Deleted on Feb 24, 2020 12:36:06 GMT -5
My AA is currently 92/8. So I'm not looking.
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Gardening Grandma
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Post by Gardening Grandma on Feb 24, 2020 12:36:38 GMT -5
Anybody's guess....
I am wondering just how prepared the US is.... With the gutting of competent people in the administration, I don't have a lot of confidence.
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haapai
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Post by haapai on Feb 24, 2020 12:45:01 GMT -5
Not really. I don't have a couple of grand floating around to buy on the dip, dive, or slump. If I did, I'd be frantically trying to remember my passwords to get cash from savings to Vanguard and then hesitating because I'm not sure that this adjustment accounts for all of the slowdown that is quite likely. I have a suspicion that the market might not be pricing in COVID-19 sweeping over the rest of the globe, at least not yet. OTOH, I bought a kilo of sock yarn yesterday just in case my city or state is still attempting to curb the coronavirus when it gets here by restricting or discouraging public gatherings and non-essential movement outside of the home. I'll cheerfully eat through my existing pantry but I cannot abide idle hands. Hence the absurd amount of fingerling undyed wool blend.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 24, 2020 12:58:02 GMT -5
How is that related to a bad day in the stock market? A bad day in the stock market tends to drive up short term interest rates. It does not have a big effect on long term rates, but right now, we don't know if this is a short term drop or a longer term drop. So, if it lasts and if this is the beginning of a pullback, it could affect longer term interest rates. I had been leaning towards locking in anyway shoot! I've been meaning to refi, but just been so busy....hope I didn't miss out.
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Gardening Grandma
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Post by Gardening Grandma on Feb 24, 2020 13:00:10 GMT -5
A bad day in the stock market tends to drive up short term interest rates. It does not have a big effect on long term rates, but right now, we don't know if this is a short term drop or a longer term drop. So, if it lasts and if this is the beginning of a pullback, it could affect longer term interest rates. I had been leaning towards locking in anyway shoot! I've been meaning to refi, but just been so busy....hope I didn't miss out. Long term rates change slowly. Right now I’m being quoted 3.5% no points for a 30 yr fixed. Our current mortgage is 4.8% so pretty attractive
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resolution
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Post by resolution on Feb 24, 2020 13:39:41 GMT -5
As retirees with a low tolerance for volality, we are 60/30 (bond/stock). So drops affect us, just not as much. I always make sure there is enough to cover a couple of years' worth of RMDs without having to sell in a bear market. We have a CD coming due in October we can use if this continues. My question is for those who keep their emergency funds in stocks. How's that working for you on days like today? How will it work if this lasts 6 months or a year? I keep the bulk of our non-retirement funds in VFIAX and so far so good. However we make sure to have enough in checking and in a money market to get us through an emergency, and it would cover our fixed expenses for a 6 -12 month job loss without requiring the sale of stocks. It is a balancing act between the desire for safety and the desire to put the money to work. Now if we find the perfect house and need to pull out everything we have tucked away, I will be sad at the timing.
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Deleted
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Post by Deleted on Feb 24, 2020 14:23:04 GMT -5
It was going to happen sooner or later- we just didn't know when or what would be the cause. Markets don't go up forever. Last week I did sell about $100K of an underperforming fund in my Fidelity IRA and buy some bond ETFs. So there's that.
Not looking forward to seeing my balances at the end of the day but the financial models my advisor ran say I'm going to be OK and they build in scenarios such as this.
And I hope it makes companies reconsider their heavy dependence on China for manufacturing. I am so sick of turning something over in a store and seeing "Made in China".
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pooks
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Post by pooks on Feb 24, 2020 14:57:09 GMT -5
OTOH, I bought a kilo of sock yarn yesterday just in case my city or state is still attempting to curb the coronavirus when it gets here by restricting or discouraging public gatherings and non-essential movement outside of the home. I'll cheerfully eat through my existing pantry but I cannot abide idle hands. Hence the absurd amount of fingerling undyed wool blend.
I am not watching the market today, any more than any other day. It was bound to go down eventually, I was surprised how long it took with this virus. OTOH, I have also bought a few projects in case I am stuck in the house for an extended period of time. Stuff I was going to buy anyway, but I moved the purchase up a little bit.
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azucena
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Post by azucena on Feb 24, 2020 15:01:52 GMT -5
shoot! I've been meaning to refi, but just been so busy....hope I didn't miss out. Long term rates change slowly. Right now I’m being quoted 3.5% no points for a 30 yr fixed. Our current mortgage is 4.8% so pretty attractive Which bank? Closing costs? This has been on my to do list too since I'm at 4.25%.
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dannylion
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Post by dannylion on Feb 24, 2020 15:02:41 GMT -5
I'm picking up some nice bargains today.
Maybe more bargain shopping in the future as well.
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souldoubt
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Post by souldoubt on Feb 24, 2020 15:30:05 GMT -5
Yes but only because I work in finance and partly out of morbid curiosity because I heard on the way into work the DOW was down 800 points shortly after opening. I'm still 100% in stocks so I'll take a beating on paper when the day is over and I'm sure it will last longer than today. I've heard from multiple people who do business in China that orders and workers are basically at a standstill. When that happens to the second largest economy in the world everyone will feel it.
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CCL
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Post by CCL on Feb 24, 2020 16:11:52 GMT -5
I'm picking up some nice bargains today. Maybe more bargain shopping in the future as well. What kind of bargains? I guess I'll take a look and see what quotes actually are.
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dannylion
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Gravity is a harsh mistress
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Post by dannylion on Feb 24, 2020 16:17:19 GMT -5
I'm picking up some nice bargains today. Maybe more bargain shopping in the future as well. What kind of bargains? I guess I'll take a look and see what quotes actually are. Probably anything you might be interested in is down today. I'm just dollar cost averaging to add to equities and funds that I already own today. If the drop continues, I might start thinking about adding some new equities.
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jerseygirl
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Post by jerseygirl on Feb 24, 2020 16:36:25 GMT -5
Actually stock values are still pretty high, many companies are very dependent on China with supply chains pretty tight. Think it will go down significantly since the virus is now showing up in multiple counties which is lowering travel on planes, cruise ships. China and rest of world is slowing use of oil. I’ve been in China 6 times and they can pull off the huge quarantine because of their government system and a fairly decent medical system. But this also means significant decrease in manufacturing. Now there seems to be fairly large initial numbers in Northern Italy, South Korea and Iran, all of which have medical systems that are fine Right now supply chains are being hit and will continue to show problems.
Hoping the US pharma companies will come through with a vaccine and maybe existing drugs might be effective. Trump is right to try to get back some manufacturing to the US and stop China stealing intellectual property as needed to start business in China. Also fracking in US is keeping us pretty independent for gas and oil. So oil stocks will go down, Walmart, Target and any other stores that sell clothing etc. from China will be hurting
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mary2029
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Post by mary2029 on Feb 24, 2020 17:11:27 GMT -5
Shame on me, but I'm hoping for a correction... or at least one before November.
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jerseygirl
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Post by jerseygirl on Feb 24, 2020 17:39:28 GMT -5
Hmmm Older son is a physician. He just called, he’s calling in prescriptions for tamiflu for myself and husband. He thinks it’s inevitable that Corona virus will be coming here. No substantial evidence yet but tamiflu is an antiviral and might be effective. Son thinks there will be run on tamiflu once virus gets to US.
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